Credit Suisse Asset Management is preparing its third collateralized loan obligation of the year—this time a billion dollar deal.

The net proceeds from the transaction, Madison Park Funding XIV, will be used to purchase a portfolio of approximately $1.0 billion of primarily senior secured leveraged loans, according to a presale report published by Fitch Ratings.

Of the eight tranches of notes to be issued, the $620 million class A notes and $5 million class X notes received ‘AAA’ preliminary ratings.  The class A notes will be marketed at three-month Libor plus 145 basis points, benefiting from a credit enhancement of 38.0%—in line with the average for recent CLO issuances.

The notes are non-callable for two years and have a four-year reinvestment period.

Morgan Stanley & Co. is the arranger for the deal.

Credit Suisse’s $800 million deal from May, Madison Park Funding XII, offered a $495 million tranche of ‘AAA’ rated class A notes with a credit enhancement of 38.1%.  The deal also has a two-year non-call period and four-year reinvestment period. The balance of net proceeds will be used to purchase a pool of primarily leveraged loans.

Credit Suisse has been a large manager of bank loans since its establishment in 1998.  As of December 2013, Credit Suisse has $29.8 billion in assets under management, $12.5 billion of which are in CLOs.


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